GoPro Profit Beats Estimates on Robust Demand for Cameras

GoPro Inc. reported a better-than-expected quarterly profit and revenue, driven by strong demand for its wearable cameras, which are used by surfers, skydivers and other action junkies.

The company's shares rose 6.7 percent in after-hours trading.

Videos taken using GoPro cameras, which can be mounted on gear such as helmets, boards, bikes and dog harnesses, have made a big splash on the Internet.

The California-based company also launched its latest flagship Hero4 camera and a cheap entry-level Hero camera in September. These cameras went on sale from Oct. 5 ahead of the U.S. holiday shopping season.

"Given the solid results for the quarter and their launch of two new products in October, it's highly likely that revenue will follow a similar pattern in fourth-quarter as last year (up almost 100 percent)," Wedbush Securities analyst Michael Pachter said.

"The social media side of the business had great metrics, with YouTube content up 92 percent year-over-year, YouTube views up 99 percent. All this indicates growing brand awareness, and bodes well for a successful holiday."

The net income attributable to GoPro shareholders was $14.6 million, or 10 cents per share, in the third quarter ended Sept. 30, compared with a loss of $1.1 million, or 1 cent per share, a year earlier.

Excluding items, the company earned 12 cents per share, topping the average analyst estimate of 8 cents.

Revenue rose about 46 percent to $280 million. Analysts on average had expected $265.6 million, according to Thomson Reuters I/B/E/S.

Gross margin jumped to 44.3 percent from 33.3 percent.

The company's shares were at $73.33 in extended trading after closing at $68.25 on the Nasdaq on Thursday. The stock has more than doubled since its market debut in June.